Posted on 06/20/2024 6:31:07 AM PDT by CFW
Thousands of homeowners face the risk of losing their homes due to “zombie mortgages” bought by companies — with some forcing foreclosures without their knowledge, according to a shocking report..
Many of the stunned homeowners took out second mortgages during the subprime lending housing bubble between 2004 and 2008 that they believed were written off — only to learn the mortgages have come back to haunt them.
An investigation by NPR found at least 10,000 old second mortgages that foreclosure activity had been initiated on in just the last two years.
[snip]
But their was a “zombie” mortgage on her home that she was not aware of.
She purchased the home in 2005 for $365,000 with an “80/20” loan. One mortgage covered 80% of the home’s cost — $292,000 — while the other covered the remaining 20% — equal to $73,000.
“It was the easiest thing I’ve ever applied for,” McDonough told NPR. “I just filled out paperwork and submitted it and I was approved.”
[snip]
When she asked for the mortgage to be modified, she said she was informed by the company, which serviced both loans, that the second mortgage was forgiven.
[snip]
But her fears were well-founded.
Limited liability companies that are registered in Delaware and whose owners’ identities are shielded by law bought up bundles of mortgages for pennies on the dollar in the wake of the 2008 housing crash — when banks were selling them for dirt cheap as they were going under.
Since housing prices were low after the crash, the mortgages were worthless. But once home values soared in the ensuing years, the investors who bought up the loans were looking to cash in.
(Excerpt) Read more at nypost.com ...
What are the odds that this no-money-down Massachusetts “victim” votes Democrat?
It’d be nice to know who’s filing the paperwork.
Easy for the Blackrock, Vanguard, State St, the company that was the topic in one of Stahl’s 60 Minute pieces(own 30k houses and counting) to snatch all of them up and take away home ownership, WEF style.
Story on a local news channel, in Atlanta, that showed that there were over 19,000 homes owned by corporations. I’m sure that number grows by the day. Because they can always outbid the middle class.
Outlaw hedge funds and private equity from doing this and home prices drop immediately.
It is after all unconstitutional to force taxpayers to pay personal loans given to deadbeats.
AND the bank stopped sending her the monthly mortgage statements on the loan.
So someone at the bank told her the loan was forgiven and then stopped sending her mortgage payment statements. Why should she think anything else?
“This woman bought a 365,000 house for no money down, and .....”
Woman🚨
Rule #1 in life: GET IT IN WRITING. Both parties sign. DO NOT just take anybody’s word for it.
That will save you a lot of grief.
In 1986 I paid off my son's school loan (~$3000). Got the paid-off paperwork and everything. Then in 2003, 17 years later, TWO different companies came after me, trying to garnish my wages for the same loan.
They could have cared less about my 'paperwork'. The bank in Indiana that made the loan had long since gone out of business, so they weren't any help.
Since I was working for a state agency at the time, I got them involved, and finally, after about 18 months, it was taken care of. But even then, they were actually able to grab a paycheck or two, which I finally got refunded.
It seems that when the bank went under, they were selling off anything and everything they could get a buck for, including paid-off loans, now marked 'in default'. I wasn't the only one. Home mortgages, car loans, construction loans, etc. All were up for grabs.
Wow, what a story. The slime balls were probably just hoping you’d pay to make it go away.
“Who are “these people who took out second mortgages during the subprime lending housing bubble between 2004 and 2008 that they believed were written off”? My bank wouldnt of loaned me money under those circumstances. How do these low credit butt wipes get ahead of me in the line?”
I remember during that time government was pushing programs and funds to help people with their mortgages. A co-worker of mine qualified for a reduction in her interest rate which reduced her monthly payment greatly.
Banks were sending letter agreeing to reductions to people who didn’t even need them. At the same time my lowly paid co-worker was struggling, a professor told me she received a letter out of the blue saying her loan qualified for a lower interest rate and her payment had been reduced by $200 per month.
I remember the ads non-stop on talk radio talking of government programs that would reduce your mortgage, cancel second mortgages, etc.
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